World Bank (WB)

Date

1980

Language

English

File Type

Link

Subject

Economy < Financial Policy

Abstract

The proposed loan would be used to cover approximately 54% of the foreign exchange requirements of subprojects to be financed by CNB over a two-year period from mid-1980 to mid-1982. Apart from direct imports, the proceeds of the loan would be utilized by CNB to finance the foreign exchange components of domestically produced capital goods (estimated at 60%). In order to ensure access of the smallest firms to Bank funds and to encourage a broader dispersal of the Bank funds outside the Seoul metropolitan area, it is intended that: (a) at least $15 million of the proceeds of the proposed loan be used to make subloans to firms employing no more than 50 workers or with total assets not exceeding W 250 million, and (b) at least $15 million of the proceeds of the proposed loan be used to finance projects located outside of the city limits of Seoul. The maximum size of individual subloans would be limited to $400,000. The proposed loan would assist CNB in its efforts to support the Government's policy of increasing the regional dispersal of employment opprtunities and of deepening the industrial structure.